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SHOPSMITH REPORTS FISCAL 1993 FINANCIAL RESULTS

 DAYTON, Ohio, June 17 /PRNewswire/ -- Shopsmith, Inc. (NASDAQ: SHOP) today reported revenues of $51.0 million for its fiscal year ended April 3, 1993, down 3.8 percent from $53.0 million last year. The decreased sales along with reduced benefit from recoverable income taxes caused a net loss of $1,389,000 or $.59 per share in the current year compared to a net loss of $817,000 or $.35 per share last year.
 John R. Folkerth, Shopsmith's chief executive officer, commented, "The reduced sales were caused by declines in sales results in the Canadian operation and in those U.S. stores not yet converted to the expanded, full-line Woodworking Unlimited format. Additionally, major discounts were used in the latter part of last year to stimulate sales of the Mark V but were not repeated in the current year. These reduced sales continued in the first two months of the new year which were also below prior-year levels."
 Folkerth continued, "In response to the disappointing results, we carefully examined our direction, operations, people and other issues. We concluded that the company's strategic direction, expanding into full-line woodworking stores aimed at the broad woodworking market, was appropriate. We also recognized the limitations of then-current staff whose knowledge and experience in retailing was limited and largely acquired from experience with Shopsmith stores. Success demanded greater retailing skills in critical positions.
 "Accordingly, early in fiscal 1993, we began recruiting people with proven retail success in key management positions. In March 1993, Ben Ruby, with over 20 years of successful retailing experience from store manager to senior manager in major U.S. retailers, joined Shopsmith as vice president, sales and marketing. We are confident that these management changes and the resultant operating improvements will bring enhanced results in subsequent months."
 According to Folkerth, the first six months of the company's fiscal year is its weakest period and, during that time, the company focuses on minimizing operating losses. Shopsmith is a leader in the production and marketing of quality woodworking tools. The company markets approximately 4,000 products through 44 company-owned stores in the U.S., Canada and Great Britain as well as through traveling demonstration sales and mail order.
 Results for the Years
 April 3, March 31,
 1993 1992
 Net sales $51,041,000 $53,033,000
 Gross profit 22,717,000 24,052,000
 (Loss) before income
 taxes (1,574,000) (1,224,000)
 Net (loss) (1,389,000) (817,000)
 (Loss) per share $(.59) $(.35)
 Average shares outstanding 2,356,000 2,307,000
 -0- 6/17/93
 /CONTACT: Bill Becker, vice president - finance, Shopsmith, Inc., 513-898-6070/
 (SHOP)


CO: Shopsmith, Inc. ST: Ohio IN: HOU SU: ERN

KL -- CL004 -- 2892 06/17/93 08:11 EDT
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Publication:PR Newswire
Date:Jun 17, 1993
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